The government of Cyprus is preparing to raise the national minimum wage by a significant amount. Officials say the increase will be based on the country's economic growth, not just a small change. At the same time, the government has also approved a special one-time Christmas Bonus for 2025. This bonus will help tens of thousands of vulnerable families. The government is making these moves to help with the high cost of living and to improve relations with trade unions.
Labour Minister Yiannis Panayiotou said that discussions about the new minimum wage are almost finished. An announcement will come very soon. He said the increase will be real and meaningful. "It will not be 'symbolic'," he stated. "It will match our growing economy and help people with their actual needs." This change comes after a recent agreement to bring back the Cost-of-Living Allowance (CoLA), which connects salaries to inflation.
For the 2025 Christmas Bonus, Officer Christos Diomidous explained that living costs are rising quickly. "We know that needs are increasing," he said. The bonus will cost over seventeen million euros and will go to about 65,000 families who receive state benefits.
However, not everyone is happy. A major trade union, PEO, criticizes the government's wider labor policies. Its General Secretary, Sotiroulla Charalambous, says the government is weakening workers' agreements. The union also believes political problems, like the situation in northern Cyprus, stop real economic progress for workers.
These new plans aim to help both low-wage workers and families with no income. Experts think they might reduce some social pressure. But the government says more difficult reforms are coming next, especially for pensions. The reaction to these current measures will affect future changes.